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The EU Is Attacking Proof of Work

The EU Is Attacking Proof of Work

Jan 30, 2024
Marty's Ƀent

The EU Is Attacking Proof of Work

Here's something that's not being talked about enough in bitcoin circles; the European Union could potentially enshrine "Technical Standards specifying certain requirements of Markets in Crypto Asset Regulation (MiCA)" as laid out by the European Securities and Markets Authority later this year that, if passed, would knee cap bitcoin mining across the EU. Among a slew of other actions that would prohibit individuals from leveraging the full potential of bitcoin's sovereign properties.

As should be expected from a collectivist society that has completely shot itself in the foot over the course of the 21st century with objectively suicidal energy policy, the ESMA's main gripe with bitcoin mining is it's eNeRgY cOnSuMpTiOn. Preferring that bitcoin transition to a less energy intensive Proof of Stake consensus mechanism and pointing to Ethereum as a responsible project that successfully made the transition. This is a cute virtue signal, but it is nothing more than that. A couple of freedom fighters in the EU, Lyudmyla Kozlovska and Bota Jardemalie, have submitted a letter to the ESMA in defense of bitcoin and the bitcoin mining industry. Highlighting that bitcoin is a potent tool for activists who find themselves under oppression. You can read the article here:

Defend PoW: Submission to ESMA - Open Dialogue Foundation
The Open Dialogue Foundation (ODF) welcomes the opportunity to participate in this consultation of the European Securities and Markets Authority (ESMA) concerning “Technical Standards specifying certain requirements of Markets in Crypto Assets Regulation (MiCA)”. We believe our comments will help to shape the regulation of the use of crypto-assets in line with fundamental rights not only in the EU, as well as the new AML/CFT Regulation, and will be reflected in the relevant report and recommendations of the Parliamentary Assembly of the Council of Europe (PACE), Parliamentary Assembly of the Organization for Security and Co-operation Europe (OSCE PA), as well as the Organisation for Economic Co-operation and Development (OECD) and the Financial Action Task Force (FATF) Recommendations regarding non-profit organisations.

In the thread below, Lyudmyla lays out the two critical moves the EU would make if these requirements are written into law.

While the focus of these requirements focuses on the impacts of Proof of Work, the ESMA is trying to "economically disincentivize or even prohibit investment into any bitcoin or bitcoin-adjacent products as a fight with a threat to environment security". This makes it sound like the EU would enact tax policies that would make it uneconomical for entrepreneurs to start bitcoin businesses and/or outright ban people from starting any business that is bitcoin-related due to the fact that it would be anchored to bitcoin's proof of work in some fashion.

Beyond this, their justification for the abolition of Proof of Work is that it threatens Europe's energy security. This is real rich when you consider the fact the the biggest threat to Europe's energy security is the energy policy that it has set over the last twenty years. The death pact better known as "net zero carbon emissions" has created an artificial scarcity of energy infrastructure that has put the EU at risk. Bitcoin miners are not the problem. If anything, they could be a crucial part of the solution if Europe got its act together, reversed course on their horrid energy policy, and committed to building back reliable base load energy sources. Incorporating bitcoin miners into a plan to build back reliable base load would significantly reduce the pay back period on new power plants because the plants would be able to produce revenue as transmission lines were being built out and could ensure that revenue is maximized once transmission lines are finished by having mining operations soak up any excess capacity.

Pragmatic and realistic bitcoiners in the EU like Lyudmyla and Bota who are attempting to properly educate the ESMA and other stakeholders throughout the EU need our support right now. If these requirements are written into law the earliest they will be able to be repealed will be two years from now. As another halving approaches, it would be a great shame for Europeans to be prevented from participating in the rapidly expanding bitcoin economy.

Defending Bitcoin PoW in the EU | Lyudmyla Kozlovska & Bota Jardemalie
This episode of the Stephan Livera Podcast features Lyudmyla Kozlovska and Bota Jardemalie, human rights defenders and advocates for Bitcoin, particularly its use as a tool for preserving human rights.

It is important to be clear here. The only thing these requirements will accomplish if they are written into law is the prevention of European citizens from reaping the benefits of the most radically liberating technology humanity has come into contact with in centuries. Bitcoin won't even notice that the EU cut itself off from the network. Other countries who recognize the opportunity that bitcoin represents will take advantage of that opportunity and surpass the EU as it renders itself an anti-progress regime.

Final thought...

Bully mode.

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